Fletcher Company collected the following data regarding production of one of its products. Compute the fixed overhead cost variance.

Direct labor standard (2 hrs. @ $13.20/hr.)	$	26.40		per finished unit
Actual direct labor hours		94,500		hrs.
Budgeted units		48,500		units
Actual finished units produced		46,500		units
Standard variable OH rate (2 hrs. @ $15.00/hr.)	$	30.00		per finished unit
Standard fixed OH rate ($496,800/54,000 units)	$	9.20		per unit
Actual cost of variable overhead costs incurred	$	1,388,000
Actual cost of fixed overhead costs incurred	$	500,000

Multiple Choice

• $22,000 favorable.

• $72,200 favorable.

• $72,200 unfavorable.

• $22,000 unfavorable.

• $15,000 unfavorable.